The Federal Reserve of the United States is wildly expected to increase the interest rate today. So what are the best US bank stocks to buy amid a new tightening cycle?
One of the most-awaited events for the financial community this quarter is the Fed’s statement and monetary policy decision. The markets wildly expect the central bank to raise the federal funds rate today and to signal further rate hikes via its dot plot.
Banks tend to perform well in a rising interest rate environment, so here are four names flying under the radar that stand to benefit from higher interest rates: National Bank Holdings, Park National Corporation, Metropolitan Bank Holding, and Prosperity Bancshares.
National Bank Holdings
National Bank Holdings (NYSE:NBHC) was founded in 2009 and operates as a regional bank from Colorado. It also does business in other states, such as Texas and Utah.
Like most of its peers, it pays a quarterly dividend too. The five-year dividend growth rate is 29.97%, and National Bank Holdings increased its annual dividend for the past six consecutive years.
Park National Corporation
Park National Corporation (NYSE:PRK) is an American regional bank from Newark, Ohio. It provides banking products and services to customers in Ohio, Kentucky, North, and South Carolina, and it pays a hefty dividend.
The forward dividend yield for the next 12 months is 3.08%, and the dividend payout ratio is 44.78%. While its stock price is flat this year, it holds close to all-time highs while the overall stock market declined in the first months of the trading year.
Metropolitan Bank Holding
Metropolitan Bank Holding (NYSE:MCB) does not pay a dividend, but its stock price is up over 100% in the last 12 months alone. The bank operates from New York, and it was founded in 1999.
At the current stock market price, the bank is valued at $1.11 billion, and the stock price trades near all-time highs.
Prosperity Bancshares
Prosperity Bancshares (NYSE:PB) is based in Houston, Texas, and it increased its quarterly dividend in the past 19 consecutive years. The forward dividend yield is 2.94%, and the dividend payout ratio is 35.41%.
